BILL NUMBER: SB 2170	CHAPTERED  09/26/00

	CHAPTER   647
	FILED WITH SECRETARY OF STATE   SEPTEMBER 26, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 24, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 29, 2000
	AMENDED IN ASSEMBLY   AUGUST 24, 2000
	AMENDED IN ASSEMBLY   AUGUST 7, 2000
	AMENDED IN SENATE   APRIL 10, 2000

INTRODUCED BY   Committee on Revenue and Taxation (Senators Chesbro
(Chair), Alpert, Bowen, Burton, Johnston, McPherson, and Poochigian)

                        FEBRUARY 25, 2000

   An act to amend Sections 51, 75.11, 75.21, 75.31, 227, 408, 532,
534, 674, 731, 732, 733, 746, 748, 749, 758, 759, 1605, 17935, and
19236 of, and to add Section 19052 to, the Revenue and Taxation Code,
relating to taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 2170, Committee on Revenue and Taxation.  Property taxation.
   (1) Existing property tax law specifies that exemptions shall be
applied to the amount of the supplemental assessment, as defined,
provided, among other things, that claims for exemption are filed.
   This bill would restore provisions relating to veterans',
homeowners', and disabled veterans' exemptions inadvertently deleted
in prior legislation.
   This bill would also provide that no additional exemption claim
shall be required to be filed until the next succeeding lien date in
the case in which a supplemental assessment results from a change in
ownership of property where the purchaser of the property owns and
uses or uses, as the case may be, other property that has been
granted the college, cemetery, church, religious, exhibition,
veterans' organization, free public libraries, free museums, or
welfare exemption on either the current roll or the roll being
prepared and the property purchased is put to the same use.
   (2) Existing property tax law provides that an escape or
supplemental assessment may be levied for every year that property
escaped assessment or was underassessed whenever a change in
ownership statement was not filed.
   This bill would revise those provisions to generally limit the
collection of back taxes to 4 years, to 8 years when the escape or
supplemental assessment is the result of an unrecorded change in
ownership, and to 6 years for underreported personal property
holdings.  By imposing new duties upon local assessors, this bill
would impose a state-mandated local program.
   (3) Existing property tax law regulates appeals of assessments of
state-assessed properties and appeals of the allocation of state
assessments.
   This bill would revise various deadlines and notice requirements
with respect to those provisions.
   This bill would eliminate the requirement to file a declaration of
intent to petition for reassessment on unitary and nonunitary
property.
   (4) Existing property tax law provides for certain types of
property tax assessments to be made outside the regular assessment
period, provides for certain notices of those assessments to be given
to assessees, and specifies that applications for reduction of those
assessments are required to be filed within certain time periods.
   This bill would clarify the various periods for the filing of an
appeal of certain assessments made outside of the normal assessment
period, would establish specified periods for the filing of an appeal
of a supplemental, or penal or escape, assessment, together with an
affidavit under penalty of perjury, in the case in which the assessee
does not receive notice of the assessment at least 15 days prior to
the normal deadline for the filing of an appeal.  This bill would
also specify the contents of the notice that is required to be
provided to an assessee with respect to a penal or escape assessment.
  By creating a new crime in the form of perjury, this bill would
establish a state-mandated local program.
   (5) Existing property tax law specifies, for a county that has not
adopted an ordinance under a specified statute with respect to the
new valuation of damaged or destroyed property, the method of
calculation of the taxable value of real property that has been
damaged or destroyed, as provided, or that has been subject to
voluntary removal by the taxpayer.  Existing law establishes that
calculation on the basis of the lesser of the base year value and the
full cash value of the subject real property.
   This bill would clarify, for purposes of calculating the taxable
value of real property that has been destroyed or been subject to
voluntary removal, that the base year value of the real property does
not include that portion of the prior base year value of the
property that was attributable to that portion of the property that
was destroyed or removed.
   Existing property tax law specifies that a documented vessel, as
defined, shall be assessed at 4% of its full cash value only if that
vessel is engaged or employed exclusively in any of certain
undertakings.
   This bill would make a technical, nonsubstantive change by
eliminating obsolete reimbursement provisions contained in these
provisions.
   (6) Existing property tax law provides that certain assessor's
appraisal information shall be disclosed to specified state agencies,
and certain of those agencies shall reimburse the assessor for
costs.
   This bill would include the State Lands Commission as one of those
state agencies to which that information shall be disclosed for
costs.
   (7) Existing property tax law provides that all contracts for the
performance of appraisal work for assessors by individuals that are
not employees of specified governmental entities shall be entered
into only after at least 2 competitive bids.
   This bill would provide that those individuals and contracts are
subject to specified confidentiality rules and requirements, require
that certain records be returned to assessors, and clarify that
requests from taxpayers have specific authorization.
   (8) The Personal Income Tax Law imposes a specified annual tax
upon limited partnerships.
   This bill would provide that specified limited partnerships that
ceased doing business would not be subject to that tax, as provided.

   (9) Existing laws provide that, for purposes of issuing a warrant
of the collection of income and bank and corporation taxes, no levy
may be issued on any property or right to property to be sold until a
thorough investigation has been completed by the Franchise Tax
Board.
   This bill would clarify that trade or business property may not be
levied upon unless the levy is approved by the board's assistant
executive officer or the board finds that collection of the tax is in
jeopardy.
   (10) The Personal Income Tax Law provides a specified refundable
child care credit.
   This bill would provide that denial of credits or refunds shall be
made as provided and would permit claimants a right of protest and
appeal.
  (11) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
   With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 51 of the Revenue and Taxation Code is amended
to read:
   51.  (a) For purposes of subdivision (b) of Section 2 of Article
XIIIA of the California Constitution, for each lien date after the
lien date in which the base year value is determined pursuant to
Section 110.1, the taxable value of real property shall, except as
otherwise provided in subdivision (b) or (c), be the lesser of:
   (1) Its base year value, compounded annually since the base year
by an inflation factor, which shall be determined as follows:
   (A) For any assessment year commencing prior to January 1, 1985,
the inflation factor shall be the percentage change in the cost of
living, as defined in Section 2212.
   (B) For any assessment year commencing after January 1, 1985, and
prior to January 1, 1998, the inflation factor shall be the
percentage change, rounded to the nearest one-thousandth of 1
percent, from December of the prior fiscal year to December of the
current fiscal year in the California Consumer Price Index for all
items, as determined by the California Department of Industrial
Relations.
   (C) For any assessment year commencing on or after January 1,
1998, the inflation factor shall be the percentage change, rounded to
the nearest one-thousandth of 1 percent, from October of the prior
fiscal year to October of the current fiscal year in the California
Consumer Price Index for all items, as determined by the California
Department of Industrial Relations.
   (D) In no event shall the percentage increase for any assessment
year determined pursuant to subparagraph (A), (B), or (C) exceed 2
percent of the prior year's value.
   (2) Its full cash value, as defined in Section 110, as of the lien
date, taking into account reductions in value due to damage,
destruction, depreciation, obsolescence, removal of property, or
other factors causing a decline in value.
   (b) If the real property was damaged or destroyed by disaster,
misfortune, or calamity and the board of supervisors of the county in
which the real property is located has not adopted an ordinance
pursuant to Section 170, or any portion of the real property has been
removed by voluntary action by the taxpayer, the taxable value of
the property shall be the sum of the following:
   (1) The lesser of its base year value of land determined under
paragraph (1) of subdivision (a) or full cash value of land
determined pursuant to paragraph (2) of subdivision (a).
   (2) The lesser of its base year value of improvements determined
pursuant to paragraph (1) of subdivision (a) or the full cash value
of improvements determined pursuant to paragraph (2) of subdivision
(a).
   In applying this subdivision, the base year value of the subject
real property does not include that portion of the previous base year
value of that property that was attributable to any portion of the
property that has been destroyed or removed.  The sum determined
under this subdivision shall then become the base year value of the
real property until that property is restored, repaired, or
reconstructed or other provisions of law require establishment of a
new base year value.
   (c) If the real property was damaged or destroyed by disaster,
misfortune or calamity and the board of supervisors in the county in
which the real property is located has adopted an ordinance pursuant
to Section 170, the taxable value of the real property shall be its
assessed value as computed pursuant to Section 170.
   (d) For purposes of this section, "real property" means that
appraisal unit that persons in the marketplace commonly buy and sell
as a unit, or that is normally valued separately.
   (e) Nothing in this section shall be construed to require the
assessor to make an annual reappraisal of all assessable property.
However, for each lien date after the first lien date for which the
taxable value of property is reduced pursuant to paragraph (2) of
subdivision (a), the value of that property shall be annually
reappraised at its full cash value as defined in Section 110 until
that value exceeds the value determined pursuant to paragraph (1) of
subdivision (a).  In no event shall the assessor condition the
implementation of the preceding sentence in any year upon the filing
of an assessment appeal.
  SEC. 1.5.  Section 75.11 of the Revenue and Taxation Code is
amended to read:
   75.11.  (a) If the change in ownership occurs or the new
construction is completed on or after January 1 but on or before May
31, then there shall be two supplemental assessments placed on the
supplemental roll.  The first supplemental assessment shall be the
difference between the new base year value and the taxable value on
the current roll.  In the case of a change in ownership of the full
interest in the real property, the second supplemental assessment
shall be the difference between the new base year value and the
taxable value to be enrolled on the roll being prepared.  If the
change in ownership is of only a partial interest in the real
property, the second supplemental assessment shall be the difference
between the sum of the new base year value of the portion transferred
plus the taxable value on the roll being prepared of the remainder
of the property and the taxable value on the roll being prepared of
the whole property.  For new construction, the second supplemental
assessment shall be the value change due to the new construction.
   (b) If the change in ownership occurs or the new construction is
completed on or after June 1 but before the succeeding January 1,
then the supplemental assessment placed on the supplemental roll
shall be the difference between the new base year value and the
taxable value on the current roll.
   (c) If there are multiple changes in ownership or multiple
completions of new construction, or both, with respect to the same
real property during the same assessment year, then there shall be a
net supplemental assessment placed on the supplemental roll, in
addition to the assessment pursuant to subdivision (a) or (b).  The
net supplemental assessment shall be the most recent new base year
value less the sum of (1) the previous entry or entries placed on the
supplemental roll computed pursuant to subdivision (a) or (b), and
(2) the corresponding taxable value on the current roll or the
taxable value to be entered on the roll being prepared, or both,
depending on the date or dates the change of ownership occurs or new
construction is completed as specified in subdivisions (a) and (b).
   (d) No supplemental assessment authorized by this section shall be
valid, or have any force or effect, unless it is placed on the
supplemental roll on or before the applicable date specified in
paragraph (1), (2), or (3), as follows:
   (1) The fourth July 1 following the July 1 of the assessment year
in which either a statement reporting the change in ownership was
filed pursuant to Section 480, 480.1, or 480.2, a preliminary change
in ownership report was filed pursuant to Section 480.3, or the new
construction was completed.
   (2) The sixth July 1 following the July 1 of the assessment year
in which either a statement reporting the change in ownership was
filed pursuant to Section 480, 480.1, or 480.2, a preliminary change
in ownership report was filed pursuant to Section 480.3, or the new
construction was completed, if the penalty provided for in Section
504 is added to the assessment.
   (3) The eighth July 1 following the July 1 of the assessment year
in which the event giving rise to the supplemental assessment
occurred, if the change in ownership or change in control was
unrecorded and a change in ownership statement required by Section
480 or preliminary change in ownership report, as required by Section
480.3, was not timely filed.
   (4) Notwithstanding paragraphs (1), (2), and (3), there shall be
no limitations period on making a supplemental assessment, if the
penalty provided for in Section 503 is added to the assessment.
   For the purposes of this subdivision, "assessment year" means the
period beginning annually as of 12:01 a.m. on the first day of
January and ending immediately prior to the succeeding first day of
January.
   (e) If, before the expiration of the applicable period specified
in subdivision (d) for making a supplemental assessment, the taxpayer
and the assessor agree in writing to extend the period for making a
supplemental assessment, correction, or claim for refund, a
supplemental assessment may be made at any time prior to the
expiration of that extended period.  The extended period may be
further extended by successive written agreements entered into prior
to the expiration of the most recent extension.
  SEC. 2.  Section 75.21 of the Revenue and Taxation Code is amended
to read:
   75.21.  (a) Exemptions shall be applied to the amount of the
supplemental assessment, provided that the property is not receiving
any other exemption on either the current roll or the roll being
prepared except as provided for in subdivision (b), that the assessee
is eligible for the exemption, and that in those instances in which
the provisions of this division require the filing of claims for
exemption, the assessee makes a claim for the exemption.
   (b) If the property received an exemption on the current roll or
the roll being prepared and the assessee on the supplemental roll is
eligible for an exemption and in those instances in which the
provisions of this division require the filing of claims for
exemption, the assessee makes a claim for an exemption of a greater
amount, then the difference in the amount between the two exemptions
shall be applied to the supplemental assessment.
   (c) In those instances in which the provisions of this division
require the filing of claims for exemption, except as provided in
subdivision (d), (e), or (f), any person claiming to be eligible for
an exemption to be applied against the amount of the supplemental
assessment shall file a claim or an amendment to a current claim, in
that form as prescribed by the board, on or before the 30th day
following the date of notice of the supplemental assessment, in order
to receive a 100-percent exemption.
   (1) With respect to property as to which the college, cemetery,
church, religious, exhibition, veterans' organization, free public
libraries, free museums, or welfare exemption was available, but for
which a timely application for exemption was not filed, the following
amounts shall be canceled or refunded:
   (A) Ninety percent of any tax or penalty or interest thereon, or
any amount of tax or penalty or interest thereon exceeding two
hundred fifty dollars ($250) in total amount, whichever is greater,
for each supplemental assessment, provided that an appropriate
application for exemption is filed on or before the date on which the
first installment of taxes on the supplemental tax bill becomes
delinquent, as provided by Section 75.52.
   (B) Eighty-five percent of any tax or penalty or interest thereon,
or any amount of tax or penalty or interest thereon exceeding two
hundred fifty dollars ($250) in total amount, whichever is greater,
for each supplemental assessment, if an appropriate application for
exemption is thereafter filed.
   (2) With respect to property as to which the welfare exemption or
veterans' organization exemption was available, all provisions of
Section 254.5, other than the specified dates for the filing of
affidavits and other acts, are applicable to this section.
   (3) With respect to property as to which the veterans', homeowners'
, or disabled veterans' exemption was available, but for which a
timely application for exemption was not filed, that portion of tax
attributable to 80 percent of the amount of exemption available shall
be canceled or refunded, provided that an appropriate application
for exemption is filed on or before the date on which the first
installment of taxes on the supplemental tax bill becomes delinquent,
as provided by Section 75.52.
   (4) With respect to property as to which any other exemption was
available, but for which a timely application for exemption was not
filed, the following amounts shall be canceled or refunded:
   (A) Ninety percent of any tax or penalty or interest thereon,
provided that an appropriate application for exemption is filed on or
before the date on which the first installment of taxes on the
supplemental tax bill becomes delinquent, as provided by Section
75.52.
   (B) Eighty-five percent of any tax or penalty or interest thereon,
or any amount of tax or penalty or interest thereon exceeding two
hundred fifty dollars ($250) in total amount, whichever is greater,
for each supplemental assessment, if an appropriate application for
exemption is thereafter filed.
   Other provisions of this division pertaining to the late filing of
claims for exemption do not apply to assessments made pursuant to
this chapter.
   (d) For purposes of this section, any claim for the homeowners'
exemption, veterans' exemption, or disabled veterans' exemption
previously filed by the owner of a dwelling, granted and in effect,
constitutes the claim or claims for that exemption required in this
section.  In the event that no claim for the homeowners' exemption,
veterans' exemption, or disabled veterans' exemption is in effect, a
claim for any of those exemptions for a single supplemental
assessment for a change in ownership or new construction occurring on
or after June 1, up to and including December 31, shall apply to
that assessment; a claim for any of those exemptions for the two
supplemental assessments for a change in ownership or new
construction occurring on or after January 1, up to and including May
31, one for the current fiscal year and one for the following fiscal
year, shall apply to those assessments.  In either case, if granted,
the claim shall remain in effect until title to the property
changes, the owner does not occupy the home as his or her principal
place of residence on the lien date, or the property is otherwise
ineligible pursuant to Section 205, 205.5, or 218.
   (e) Notwithstanding subdivision (c), no additional exemption claim
shall be required to be filed until the next succeeding lien date in
the case in which a supplemental assessment results from the
completion of new construction on property that has previously been
granted exemption on either the current roll or the roll being
prepared.
   (f) (1) Notwithstanding subdivision (c), no additional exemption
claim shall be required to be filed until the next succeeding lien
date in the instance where a supplemental assessment results from a
change in ownership of property where the purchaser of the property
owns and uses or uses, as the case may be, other property that has
been granted the college, cemetery, church, religious, exhibition,
veterans' organization, free public libraries, free museums, or
welfare exemption on either the current roll or the roll being
prepared and the property purchased is put to the same use.  If a
timely application for exemption is not filed on the next succeeding
lien date, then the provisions of paragraph (1) of subdivision (c)
shall apply.
   (2) In all other instances where a supplemental assessment results
from a change in ownership of property, an application for exemption
shall be filed pursuant to the provisions of subdivision (c).
  SEC. 3.  Section 75.31 of the Revenue and Taxation Code is amended
to read:
   75.31.  (a) Whenever the assessor has determined a new base year
value as provided in Section 75.10, the assessor shall send a notice
to the assessee showing the following:
   (1) The new base year value of the property that has changed
ownership, or the new base year value of the completed new
construction that shall be added to the existing taxable value of the
remainder of the property.
   (2) The taxable value appearing on the current roll, and if the
change in ownership or completion of new construction occurred
between January 1 and May 31, the taxable value on the roll being
prepared.
   (3) The date of the change in ownership or completion of new
construction.
   (4) The amount of the supplemental assessments.
   (5) The exempt amount, if any, on the current roll or the roll
being prepared.
   (6) The date the notice was mailed.
   (7) A statement that the supplemental assessment was determined in
accordance with Article XIIIA of the California Constitution that
generally requires reappraisal of property whenever a change in
ownership occurs or property is newly constructed.
   (8) Any other information which the board may prescribe.
   (b) In addition to the information specified in subdivision (a),
the notice shall inform the assessee of the procedure for filing a
claim for exemption that is to be filed within 30 days of the date of
the notice.
   (c) (1) The notice shall advise the assessee of the right to an
informal review and the right to appeal the supplemental assessment,
and, unless subject to paragraph (2) or (3), that the appeal shall be
filed within 60 days of the date of mailing printed on the notice or
the postmark date therefor, whichever is later.  For the purposes of
equalization proceedings, the supplemental assessment shall be
considered an assessment made outside of the regular assessment
period as provided in Section 1605.
   (2) For counties in which the board of supervisors has adopted the
provisions of subdivision (c) of Section 1605, the notice shall
advise the assessee of the right to appeal the supplemental
assessment, and that the appeal shall, except as provided in
paragraph (3), be filed within 60 days of the date of mailing printed
on the tax bill or the postmark date therefor, whichever is later.
For the purposes of equalization proceedings, the supplemental
assessment shall be considered an assessment made outside of the
regular assessment period as provided in Section 1605.
   (3) (A) If the taxpayer does not receive a notice in accordance
with this section at least 15 days prior to the deadline to file the
application described in Section 1603, the affected party or his or
her agent may file an application within 60 days of the date of
mailing printed on the tax bill or the postmark thereof, whichever is
later, along with an affidavit declaring under penalty of perjury
that the notice was not timely received.
   (B) Notwithstanding any other provision of this subdivision, an
application for reduction in a supplemental assessment may be filed
within 12 months following the month in which the assessee is
notified of that assessment, if the affected party or his or her
agent and the assessor stipulate that there is an error in assessment
as the result of the exercise of the assessor's judgment in
determining the full cash value of the property and a written
stipulation as to the full cash value and the assessed value is filed
in accordance with Section 1607.
   (d) The notice shall advise the assessee of both of the following:

   (1) The requirements, procedures, and deadlines with respect to an
application for the reduction of a base year value pursuant to
Section 80, or the reduction of an assessment pursuant to Section
1603.
   (2) The criteria under Section 51 for the determination of taxable
value, and the requirement of Section 1602 that the custodial
officer of the local roll make the roll, or a copy thereof, available
for inspection by all interested parties during regular office
hours.
   (e) The notice shall advise the assessee that if the supplemental
assessment is a negative amount the auditor shall make a refund of a
portion of taxes paid on assessments made on the current roll, or the
roll being prepared, or both.
   (f) The notice shall be furnished by the assessor to the assessee
by regular United States mail directed to the assessee at the
assessee's latest address known to the assessor.
   (g) The notice given by the assessor under this section shall be
on a form prescribed by the State Board of Equalization.
  SEC. 4.  Section 227 of the Revenue and Taxation Code is amended to
read:
   227.  A documented vessel, as defined in Section 130, shall be
assessed at 4 percent of its full cash value only if the vessel is
engaged or employed exclusively in any of the following:
   (a) In the taking and possession of fish or other living resource
of the sea for commercial purposes.
   (b) In instruction or research studies as an oceanographic
research vessel.
   (c) In carrying or transporting seven or more people for hire for
commercial passenger fishing purposes and holds a current certificate
of inspection issued by the United States Coast Guard.  A vessel
shall not be deemed to be engaged or employed in activities other
than the carrying or transporting of seven or more persons for hire
for commercial passenger fishing purposes by reason of that vessel
being used occasionally for dive, tour, or whale watching purposes.
For purposes of this subdivision, "occasionally" means 15 percent or
less of the total operating time logged for the immediately preceding
assessment year.
  SEC. 4.6.  Section 408 of the Revenue and Taxation Code is amended
to read:
   408.  (a) Except as otherwise provided in subdivisions (b), (c),
(d), and (e) any information and records in the assessor's office
that are not required by law to be kept or prepared by the assessor,
and homeowners' exemption claims, are not public documents and shall
not be open to public inspection.  Property receiving the homeowners'
exemption shall be clearly identified on the assessment roll.  The
assessor shall maintain records which shall be open to public
inspection to identify those claimants who have been granted the
homeowners' exemption.
   (b) The assessor may provide any appraisal data in his or her
possession to the assessor of any county.
   The assessor shall disclose information, furnish abstracts, or
permit access to all records in his or her office to law enforcement
agencies, the county grand jury, the board of supervisors or their
duly authorized agents, employees or representatives when conducting
an investigation of the assessor's office pursuant to Section 25303
of the Government Code, the Controller, employees of the Controller
for property tax postponement purposes, probate referees, employees
of the Franchise Tax Board for tax administration purposes only,
staff appraisers of the Department of Financial Institutions, the
Department of Transportation, the Department of General Services, the
State Board of Equalization, the State Lands Commission, the State
Department of Social Services, the Department of Water Resources, and
other duly authorized legislative or administrative bodies of the
state pursuant to their authorization to examine the records.
Whenever the assessor discloses information, furnishes abstracts, or
permits access to records in his or her office to staff appraisers of
the Department of Financial Institutions, the Department of
Transportation, the Department of General Services, the State Lands
Commission, or the Department of Water Resources pursuant to this
section, the department shall reimburse the assessor for any costs
incurred as a result thereof.
   (c) Upon the request of the tax collector, the assessor shall
disclose and provide to the tax collector information used in the
preparation of that portion of the unsecured roll for which the taxes
thereon are delinquent.  The tax collector shall certify to the
assessor that he or she needs the information requested for the
enforcement of the tax lien in collecting those delinquent taxes.
Information requested by the tax collector may include social
security numbers, and the assessor shall recover from the tax
collector his or her actual and reasonable costs for providing the
information.  The tax collector shall add the costs described in the
preceding sentence to the assessee's delinquent tax lien and collect
those costs subject to subdivision (e) of Section 2922.
   (d) The assessor shall, upon the request of an assessee or his or
her designated representative, permit the assessee or representative
to inspect or copy any market data in the assessor's possession.  For
purposes of this subdivision, "market data" means any information in
the assessor's possession, whether or not required to be prepared or
kept by him or her, relating to the sale of any property comparable
to the property of the assessee, if the assessor bases his or her
assessment of the assessee's property, in whole or in part, on that
comparable sale or sales.  The assessor shall provide the names of
the seller and buyer of each property on which the comparison is
based, the location of that property, the date of the sale, and the
consideration paid for the property, whether paid in money or
otherwise.  However, for purposes of providing market data, the
assessor shall not display any document relating to the business
affairs or property of another.
   (e) (1) With respect to information, documents, and records, other
than market data as defined in subdivision (d), the assessor shall,
upon request of an assessee of property, or his or her designated
representative, permit the assessee or representative to inspect or
copy all information, documents, and records, including auditors'
narrations and workpapers, whether or not required to be kept or
prepared by the assessor, relating to the appraisal and the
assessment of the assessee's property, and any penalties and interest
thereon.
   (2) After enrolling an assessment, the assessor shall respond to a
written request for information supporting the assessment,
including, but not limited to, any appraisal and other data requested
by the assessee.
   (3) Except as provided in Section 408.1, an assessee, or his or
her designated representative, shall not be permitted to inspect or
copy information and records that also relate to the property or
business affairs of another, unless that disclosure is ordered by a
competent court in a proceeding initiated by a taxpayer seeking to
challenge the legality of the assessment of his or her property.
   (f) (1) Permission for the inspection or copying requested
pursuant to subdivision (d) or (e) shall be granted as soon as
reasonably possible to the assessee or his or her designated
representative.
   (2) If the assessee, or his or her designated representative,
requests the assessor to make copies of any of the requested records,
the assessee shall reimburse the assessor for the reasonable costs
incurred in reproducing and providing the copies.
   (3) If the assessor fails to permit the inspection or copying of
materials or information as requested pursuant to subdivision (d) or
(e) and the assessor introduces any requested materials or
information at any assessment appeals
               board hearing, the assessee or his or her
representative may request and shall be granted a continuance for a
reasonable period of time.  The continuance shall extend the two-year
period specified in subdivision (c) of Section 1604 for a period of
time equal to the period of continuance.
  SEC. 4.7.  Section 532 of the Revenue and Taxation Code is amended
to read:
   532.  (a) Except as provided in subdivision (b), any assessment
made pursuant to either Article 3 (commencing with Section 501) or
this article shall be made within four years after July 1 of the
assessment year in which the property escaped taxation or was
underassessed.
   (b) (1) Any assessment to which the penalty provided for in
Section 504 must be added shall be made within six years after July 1
of the assessment year in which the property escaped taxation or was
underassessed.
   (2) Any assessment resulting from an unrecorded change in
ownership or change in control for which either a change in ownership
statement, as required by Section 480 or a preliminary change in
ownership report, as required by Section 480.3, is not filed with
respect to the event giving rise to the escape assessment or
underassessment shall be made within eight years after July 1 of the
assessment year in which the property escaped taxation or was
underassessed.  For purposes of this paragraph, an "unrecorded change
in ownership or change in control" means a deed or other document
evidencing a change in ownership that was not filed with the county
recorder's office at the time the event took place.
   (3) Notwithstanding paragraphs (1) and (2), in the case where
property has escaped taxation, in whole or in part, or has been
underassessed, following a change in ownership and either the penalty
provided for in Section 503 must be added or a change in ownership
statement, as required by Section 480.1 or 480.2 was not filed with
respect to the event giving rise to the escape assessment or
underassessment, an escape assessment shall be made for each year in
which the property escaped taxation or was underassessed.
   (c) For purposes of this section, "assessment year" means the
period defined in Section 118.
  SEC. 5.  Section 534 of the Revenue and Taxation Code is amended to
read:
   534.  (a) Assessments made pursuant to Article 3 (commencing with
Section 501) or this article shall be treated like, and taxed at the
same rate applicable to, property regularly assessed on the roll on
which it is entered, unless the assessment relates to a prior year
and then the tax rate of the prior year shall be applied, except that
the tax rate for years prior to the 1981-82 fiscal year shall be
divided by four.
   (b) No assessment described in subdivision (a) shall be effective
for any purpose, including its review, equalization and adjustment by
the Board of Equalization, until the assessee has been notified
thereof personally or by United States mail at his or her address as
contained in the official records of the county assessor.  For
purposes of Section 532, the assessment shall be deemed made on the
date on which it is entered on the roll pursuant to Section 533, if
the assessee is notified of the assessment within 60 days after the
statute of limitations or the placing of the escape assessment on the
assessment roll.  Otherwise the assessment shall be deemed made only
on the date the assessee is so notified.
   (c) The notice given by the assessor pursuant to this section
shall include all of the following:
   (1) The date the notice was mailed.
   (2) Information regarding the assessee's right to an informal
review and the right to appeal the assessment, and except in a case
in which paragraph (3) applies, that the appeal shall be filed within
60 days of the date of mailing printed on the notice or the
postmarked date therefor, whichever is later.  For the purposes of
equalization proceedings, the supplemental assessment shall be
considered an assessment made outside of the regular assessment
period as provided in Section 1605.
   (3) For counties in which the board of supervisors has adopted a
resolution in accordance with subdivision (c) of Section 1605, the
notice shall advise the assessee of the right to appeal the
assessment, and that the appeal shall be filed within 60 days of the
date of mailing printed on the tax bill or the postmark therefor,
whichever is later.  For the purposes of equalization proceedings,
the supplemental assessment shall be considered an assessment made
outside of the regular assessment period as provided in Section 1605.

   (4) A description of the requirements, procedures, and deadlines
with respect to an application for the reduction of an assessment
pursuant to Section 1605.
   (d) (1) The notice given by the assessor under this section shall
be on a form prescribed by the board.
   (2) Giving of the notice required by Section 531.8 shall not
satisfy the requirements of this section.
  SEC. 5.5.  Section 674 of the Revenue and Taxation Code is amended
to read:
   674.  (a) All contracts for the performance of appraisal work for
assessors by any person who is not an employee of the state, any
county, or any city shall be entered into only after at least two
competitive bids and shall be entered into either on a fixed fee
basis or on the basis of an hourly rate with a maximum dollar amount.

   (b) In addition to any provision in the Real Estate Appraisers'
Licensing and Certification Law (Part 3 (commencing with Section
11300) of Division 4 of the Business and Professions Code), a
contractor shall maintain the confidentiality of assessee information
and records as provided in Sections 408, 451, and 481 that is
obtained in performance of the contract.
   (1) A request for information and records from an assessee shall
be made by the assessor.  The assessor may authorize a contractor to
request additional information or records, if needed.  However, a
contractor shall not request that information or records without the
written authorization of the assessor.
   (2) A contractor shall not provide appraisal data in his or her
possession to the assessor or a contractor of another county who is
not a party to the contract.  An assessor may provide that data to
the assessor of another county as provided in subdivision (b) of
Section 408.
   (c) A contractor may not retain information contained in, or
derived from, an assessee's confidential information and records
after the conclusion, termination, or nonrenewal of the contract.
Within 90 days of the conclusion, termination, or nonrenewal of the
contract, the contractor shall:
   (1) Purge and return to the assessor any assessee records, whether
originals, copies, or electronically stored, provided by the
assessor or otherwise obtained from the assessee.
   (2) Provide a written declaration to the assessor that the
contractor has complied with this subdivision.
   (d) All contracts entered into pursuant to subdivision (a) shall
include a provision incorporating the requirements of subdivisions
(b) and (c).  This provision of the contract shall use language that
is prescribed by the State Board of Equalization.
   (e) For purposes of this section, a "contractor" means any person
who is not an employee of the state, any county, or any city who
performs appraisal work pursuant to a contract with an assessor.
  SEC. 6.  Section 731 of the Revenue and Taxation Code is amended to
read:
   731.  Each year between the first day of January and the first day
of June, upon valuing the unitary property of an assessee, the board
shall mail to the assessee, at its address as shown in the records
of the board, a notice stating the amount of the assessed value of
the assessee's unitary property.  The notice shall advise the
assessee that a petition for reassessment of the unitary property may
be filed, not later than July 20 of the year of the notice, at the
headquarters of the board in Sacramento.
  SEC. 7.  Section 732 of the Revenue and Taxation Code is amended to
read:
   732.  Each year between the first day of January and the last day
of July, upon valuing the nonunitary property of an assessee, the
board shall mail to the assessee at its address shown in the records
of the board a notice stating the amount of the assessed value of the
assessee's nonunitary property.  The notice shall advise the
assessee that a petition for reassessment of the nonunitary property
may be filed, not later than September 20 of the year of the notice,
at the headquarters of the board in Sacramento.
  SEC. 8.  Section 733 of the Revenue and Taxation Code is amended to
read:
   733.  (a) If a timely petition for reassessment is not filed with
the board, an assessment of unitary or nonunitary property of the
assessee shall become final at the expiration of the period specified
for filing a petition in the notice given in accordance with Section
731 or Section 732.
   (b) The board may extend the period for filing a petition for
reassessment once for a period not to exceed 15 days, provided a
written request for the extension is filed with the board prior to
the expiration of the period for which the extension may be granted.

  SEC. 9.  Section 746 of the Revenue and Taxation Code is amended to
read:
   746.  Each year, upon or prior to the completion of the assessment
roll prepared by the board, but not later than June 15, the board
shall mail notice to each assessee at its address as shown on the
records of the board, of the allocated assessed values of the
assessee's unitary property that have been or are proposed to be
placed on the assessment roll to be transmitted to county auditors.
The notice shall advise the assessee that a petition for a correction
of an allocated assessment may be filed, not later than July 20 of
the year of the notice, at the headquarters of the board in
Sacramento.
  SEC. 10.  Section 748 of the Revenue and Taxation Code is amended
to read:
   748.  Upon receipt of a timely petition for correction of an
allocated assessment, the board shall set a time and place within the
state for hearing on the petition.  Notice thereof shall be mailed
to the assessee at its address as shown on the records of the board
not less than 10 working days in advance of the date of the hearing.

  SEC. 11.  Section 749 of the Revenue and Taxation Code is amended
to read:
   749.  Section 743 shall be applicable to hearings on petitions for
correction of an allocated assessment and the board shall notify the
petitioner of its decision by mail.  The decision shall include
written findings and conclusions of the board if requested at or
prior to the commencement of the hearing.  Decisions of the board on
petitions for correction of an unallocated assessment shall be
completed on or before December 31.
  SEC. 12.  Section 758 of the Revenue and Taxation Code is amended
to read:
   758.  If the board roll has been transmitted to the local
auditors, the board may make an assessment of escaped property or a
roll correction.  At least 30 days prior to transmitting a statement
of assessment of escaped property or making a roll correction, the
board shall notify the assessee whose property's full value has
increased as a result of an escape assessment or roll correction of
the assessed value of that property as it shall appear on the
corrected roll.  The notice shall be mailed to the assessee at its
address shown in the records of the board.  The notice shall advise
the assessee of the date by which and the place where a petition for
reassessment may be filed.  The date for filing the petition shall
not be less than 50 days from the date of the mailing of the notice
of value.  The provisions of Sections 741 to 744, inclusive, shall be
applicable to petitions and hearings pursuant to this section except
for the dates prescribed for decisions of the board.
  SEC. 13.  Section 759 of the Revenue and Taxation Code is amended
to read:
   759.  (a) If a timely petition for reassessment is not filed in
accordance with the notice provided by the board pursuant to Section
758, an escape assessment or roll correction shall become final at
the expiration of the period for filing a petition for reassessment
specified by that notice.
   (b) The board may extend the period for filing a petition for
reassessment once for a period not to exceed 15 days, provided a
written request for the extension is filed with the board prior to
the expiration of the period for which the extension may be granted.

  SEC. 14.  Section 1605 of the Revenue and Taxation Code is amended
to read:
   1605.  (a) An assessment made outside of the regular assessment
period is not effective for any purpose, including its review,
equalization and adjustment by the county board, until the assessee
has been notified thereof personally or by United States mail at the
assessee's address as contained in the official records of the county
assessor.  For purposes of this subdivision, for counties in which
the board of supervisors has adopted the provisions of subdivision
(c) and counties of the first class, receipt by the assessee of a tax
bill based on that assessment shall suffice as the notice.
   (b) Upon application for reduction pursuant to subdivision (a) of
Section 1603, the assessment shall be subject to review, equalization
and adjustment by the county board.  In the case of an assessment
made pursuant to Article 3 (commencing with Section 501) or Article 4
(commencing with Section 531) of Chapter 3 of Part 2, the
application shall be filed with the clerk no later than 60 days after
the date of mailing printed on the notice of assessment, or the
postmark therefor, whichever is later.  For counties in which the
board of supervisors has adopted a resolution in accordance with
subdivision (c), and counties of the first class, an application
subject to the preceding sentence shall be filed within 60 days of
the date of mailing printed on the tax bill or the postmark therefor,
whichever is later.  If the taxpayer does not receive the notice of
assessment described in Section 534 at least 15 calendar days prior
to the deadline to file the application described in Section 1603,
the party affected, or his or her agent, may file the application
within 60 days of the date of mailing printed on the tax bill or the
postmark therefor, whichever is later, along with an affidavit
declaring under penalty of perjury that the notice was not timely
received.
   (c) The board of supervisors of any county may by resolution
require that the application for reduction pursuant to subdivision
(a) of Section 1603 be filed with the clerk no later than 60 days
after the date of mailing printed on the tax bill or the postmark
therefor, whichever is later.
   (d) In counties where assessment appeals boards have not been
created and are not in existence, at any regular meeting, the board
of supervisors, on the request of the assessor or any taxpayer, shall
sit as the county board to equalize any assessments made by the
assessor outside the regular assessment period for those assessments.
  Notwithstanding any other provision of law to the contrary, in any
county in which assessment appeals boards have been created and are
in existence, the time for equalization of assessments made outside
the regular assessment period for those assessments, including
assessments made pursuant to Sections 501, 503, 504, 531, and 531.5,
shall be prescribed by rules adopted by the board of supervisors.
   (e) If an audit of the books and records of any profession, trade,
or business pursuant to Section 469 discloses property subject to an
escaped assessment for any year, then the original assessment of all
property of the assessee at the location of the profession, trade,
or business for that year shall be subject to review, equalization
and adjustment by the county board of equalization or assessment
appeals board pursuant to this chapter, except in those instances
when that property had previously been equalized for the year in
question by the county board of equalization or assessment appeals
board.  The application shall be filed with the clerk no later than
60 days after the date on which the assessee was notified.  Receipt
by the assessee of a tax bill based upon that assessment shall
suffice as that notice.
   (f) For purposes of subdivision (a), "regular assessment period"
means January 1 to and including July 1 of the calendar year in which
the assessment, other than escape assessments, should have been
enrolled if it had been timely made.
  SEC. 15.  Section 17935 of the Revenue and Taxation Code is amended
to read:
   17935.  (a) For each taxable year beginning on or after January 1,
1997, every limited partnership doing business in this state (as
defined by Section 23101) and required to file a return under Section
18633 shall pay annually to this state a tax for the privilege of
doing business in this state in an amount equal to the applicable
amount specified in Section 23153.
   (b) (1) In addition to any limited partnership that is doing
business in this state and therefore is subject to the tax imposed by
subdivision (a), for each taxable year beginning on or after January
1, 1997, every limited partnership that has executed, acknowledged,
and filed a certificate of limited partnership with the Secretary of
State pursuant to Section 15621 of the Corporations Code, and every
foreign limited partnership that has registered with the Secretary of
State pursuant to Section 15692 of the Corporations Code, shall pay
annually the tax prescribed in subdivision (a).  The tax shall be
paid for each taxable year, or part thereof, until a certificate of
cancellation is filed on behalf of the limited partnership with the
office of the Secretary of State pursuant to Section 15623 or 15696
of the Corporations Code.
   (2) If a taxpayer files a return with the Franchise Tax Board that
is designated its final return, that board shall notify the taxpayer
that the minimum tax is due annually until a certificate of
cancellation is filed with the Secretary of State pursuant to Section
15623 or 15696 of the Corporations Code.
   (c) The tax imposed under this section shall be due and payable on
the date the return is required to be filed under former Section
18432 or 18633.
   (d) For purposes of this section, "limited partnership" means any
partnership formed by two or more persons under the laws of this
state or any other jurisdiction and having one or more general
partners and one or more limited partners.
   (e) Notwithstanding subdivision (b), any limited partnership that
ceased doing business prior to January 1, 1997, filed a final return
with the Franchise Tax Board for a taxable year ending before January
1, 1997, and filed a certificate of dissolution with the Secretary
of State pursuant to Section 15623 of the Corporations Code prior to
January 1, 1997, shall not be subject to the tax imposed by
subdivision (b) of this section for any period following the date the
certificate of dissolution was filed with the Secretary of State,
but only if the limited partnership files a certificate of
cancellation with the Secretary of State pursuant to Section 15623 of
the Corporations Code.  In the case where a notice of proposed
deficiency assessment of tax or a notice of tax due (whichever is
applicable) is mailed after January 1, 2001, the first sentence of
this subdivision shall not apply unless the certificate of
cancellation is filed with the Secretary of State not later than 60
days after the date of the mailing of the notice.
  SEC. 16.  Section 19052 is added to the Revenue and Taxation Code,
to read:
   19052.  Notwithstanding any other provision of this part to the
contrary, denial of credits or refunds claimed on or after January 1,
2001, in accordance with Section 17052.6 may be made pursuant to
Section 19051, except that in these cases claimants shall have the
right of protest and appeal provided by this part.
  SEC. 17.  Section 19236 of the Revenue and Taxation Code is amended
to read:
   19236.  For purposes of issuing a warrant pursuant to this
article:
   (a) (1) No levy may be issued on any property or right to property
to be sold in accordance with the Code of Civil Procedure until a
thorough investigation of the status of the property has been
completed by the Franchise Tax Board.
   (2) For purposes of paragraph (1), an investigation of the status
of any property shall include all of the following:
   (A) A verification of the taxpayer's liability.
   (B) The completion of an analysis to determine whether the expense
of the sale process to the state exceeds the liability for which the
levy would be issued.
   (C) The determination that the equity in the property is
sufficient to yield net proceeds from the sale of the property to
apply to the liability.
   (D) A thorough consideration of alternative collection methods.
   (b) If the amount of the levy does not exceed five thousand
dollars ($5,000), no levy may be issued on either of the following:
   (1) Any real property used as a residence by the taxpayer.
   (2) Any real property of the taxpayer (other than real property
which is rented) used by any other individual as a residence.
   (c) Notwithstanding the investigation required under subdivision
(a):
   (1) The principal residence of the taxpayer may not be sold except
in accordance with Article 4 (commencing with Section 704.710) of
Chapter 4 of Division 2 of Title 9 of the Code of Civil Procedure,
which requires a court order for sale.
   (2) Tangible personal property or real property (other than real
property which is rented or a principal residence) used in the trade
or business of an individual taxpayer may not be levied unless:
   (A) The levy is approved in writing by the assistant executive
officer for collection (or delegate), or
   (B) The Franchise Tax Board finds that collection of tax is in
jeopardy.  The officer, or delegate, may not approve a levy under
subparagraph (A) unless the officer determines that the taxpayer's
other assets subject to collection are insufficient to pay the amount
due, together with expenses of the proceedings.
   (d) This section shall be operative for any warrant issued on or
after the effective date of the act adding this section.
  SEC. 18.  The amendments to Section 17935 of the Revenue and
Taxation Code made by Section 15 of this act are consistent with the
amendments made by Section 54 of Chapter 987 of the Statutes of 1999,
and are declaratory of existing law.
  SEC. 19.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution for certain
costs that may be incurred by a local agency or school district
because in that regard this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
   However, notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
other costs mandated by the state, reimbursement to local agencies
and school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
